Azernews.Az

By Sara Israfilbayova

The cash turnover in the payment of wages and other payments decreased by 75.3 percent since early 2017.

Azerbaijan’s Deputy Minister of Taxes Ilkin Valiyev said that this indicator was achieved thanks to implementation of the law ‘On Non-Cash Payments’.

Valiyev added that the law allowed to increase the share of non-cash payments in all spheres of the economy, ensure transparency of expenditures, legalize incomes, wages and other payments, which in turn led to a reduction in the number of facts of tax evasion and increased transparency in the tax sphere.

"For the past period of 2017, the cash turnover in the sphere of purchasing goods and services decreased by 62.6 percent, trade objects by 67.5 percent, and in the sphere of issuing wages and other payments by 75.3 percent," noted Valiyev.

The law on Non-Cash Payments has come into force since January 1, 2017. The law was adopted given the need to strengthen accounting in the financial system, through the development of non-cash payments.

Under the law, trade and public catering entities (registered as VAT payers), with the annual turnover exceeding 200,000 manats ($117,591) have a right for limited volume of cash payments [not exceeding 30,000 manats ($17,638) per month], while a limit of 15,000 manats ($8,819) will be set for other taxpayers.

Besides, salaries will be paid only in non-cash form. The law also envisages a limit for cashing operations. Banks and postal operators will charge a simplified tax (1 percent of the sum) for cashing of means kept in bank accounts of legal entities and private entrepreneurs.

In total, the volume of non-cash payments in 2016 equaled to 856 million manats ($503.3 million), recording an increase of 122 million manats ($71.73) or 16.6 percent.

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